MERC allows MSEDCL to launch competitive bidding for 2500 MW long-term RE-RTC power and approves multiple deviations from MoP's RE RTC Guidelines
Petition of Maharashtra State Electricity Distribution Co. Ltd. seeking prior approval for commencement of competitive bidding process for long term procurement of 2500 MW RTC Power including of the associated bidding documents, along with the deviations with the MoP’s RE RTC guidelines dated 22 July 2020.
MSEDCL sought MERC's prior approval under Section 63 of the Electricity Act, 2003 to commence competitive bidding for 2500 MW long-term Round-the-Clock (RTC) power from RE sources complemented with any other source/storage, along with approval of draft bid documents and deviations from MoP's RE RTC Guidelines (22 July 2020, Clause 19). The procurement is meant to optimize MSEDCL's existing 5000 MW solar PPA (Adani Renewable Energy Fifty-Five Ltd, tariff Rs.2.70/kWh), meet rising peak demand (25,412 MW to 32,994 MW by FY2029-30), fulfil RPO obligations, and cater to emerging RTC green power demand from data centres and AI/cloud loads in Maharashtra.
- Approved MSEDCL's proposal to procure 2500 MW RE-RTC power on long-term basis (bid size options of 1250 MW or 2500 MW)
- Approved draft bid documents (RfQ/RfP and PPA) as submitted, including revisions dated 30 December 2025
- Allowed deviation reducing availability requirement from 90% to 80% annual, 70% monthly, retaining 90% during peak hours
- Allowed deviation to composite single-part fixed tariff for 25 years instead of two-part escalable tariff structure
- Allowed deviations on minimum bid size (1250/2500 MW vs 250 MW), removal of spare capacity tie-up proof, lower financial qualifying thresholds (Net Worth Rs.50 lakh/MW, Turnover Rs.1 crore/MW, EBITDA Rs.50 lakh/MW), bidding parameter (fixed 1st year tariff for full term, modified bucket-filling), and deemed supply treatment for transmission grid unavailability
- Allowed co-location of Battery Energy Storage System (BESS) with the 5000 MW Khavda solar plant, subject to developer's consent dated 16 January 2026
- MSEDCL to initiate competitive bidding process using the approved bid documents and deviations
- MSEDCL to conduct single-stage two-envelope bidding (RFQ + RFP) with e-reverse auction and bucket-filling allocation
- Selected bidder(s) to enter PPA with Supply Commencement Dates: Phase I (28.02.2027), Phase II (29.04.2027), Phase III (29.07.2027)
- MSEDCL must file a separate petition under Section 63 for adoption of the discovered tariff after bidding concludes
- Successful bidder responsible for scheduling solar power under the Executed PPA and for independently ensuring RTC supply obligations
- GST rate reduction benefit (Notification 9/2025-Central Tax) on solar tariff, once effective, to be passed through to MSEDCL
- • Large C&I consumers, especially data centres/AI/cloud loads, can expect availability of traceable, RTC green power supply routed through MSEDCL's upcoming 2500 MW tender, supporting sustainability/ESG reporting needs
- • Fixed single-part tariff for 25 years shifts fuel/price escalation risk to the bidder, offering long-term tariff certainty for downstream C&I procurement via MSEDCL
- • Developers/bidders benefit from relaxed availability (80% vs 90%), lower financial thresholds, larger permitted bid sizes, and no spare-capacity tie-up proof — easier entry but higher performance risk on non-RE tie-ups and transmission constraints (borne by MSEDCL)
- • BESS co-location with the 5000 MW Khavda solar project is now enabled, opening storage-based RTC supply structuring opportunities for developers bidding into this tender
This order operationalizes one of India's largest RE-RTC tenders (2500 MW) anchored to an existing 5000 MW solar PPA, effectively monetizing surplus daytime solar into firm RTC supply for MSEDCL. The generous deviations (lower availability, larger bid sizes, fixed 25-year tariff, relaxed financial criteria) are pragmatic and modelled on SECI's experience to maximize bidder participation, but they also shift meaningful risk (transmission unavailability, scheduling) onto MSEDCL/consumers. Developers targeting data centre and green-RTC supply chains should track this RfP closely — early movers with storage-backed non-RE tie-ups will have a structural advantage.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.